【RCI3 single line + BODSOR】Nikkei 225 futures 15-minute chart retracement sell signal
※BODSOR is an indicator developed to improve entry accuracy when buying on dips or selling on rallies using three RCI lines.
It is designed to enhance the timing of entries for pullbacks and reversals.
RCI Three-Line and BODSOR— usage examples
One of the characteristics of the RCI three-line (RCI9, RCI26, RCI52) is
“When all three RCIs are aligned in the same direction, the price move in that direction tends to be larger.”
There is such a tendency.
If RCI26 and RCI52 are rising (falling) and RCI9 is falling (rising),
when RCI9 reverses,“all three RCIs align in the same direction.”This is what happens.
Therefore, detecting when RCI9 will reverse is extremely important.
(Case by case, but simply waiting for a definitive reversal of RCI9 often results in being late.)
Therefore, BODSOR was developed to detect as early as possible the moment when the momentum of RCI9's rise (or fall) weakens.
This is the purpose of BODSOR.
The figure below shows the Nikkei 225 futures 15-minute chart.
Nikkei 225 futures 15-minute chart (November 2, 2018)
Top: BODSOR
Bottom: RCI three-lines (red: RCI9, light blue: RCI26, yellow: RCI52)
Of the three RCI lines, only RCI9 is clearly rising.
If RCI9 reverses downward, all three RCIs may align downward.
In other words, there is a possibility of a strong price decline.
In such a situation,BODSOR shows a pullback-sell signal (yellow arrow).
After the signal lights up, the price declines smoothly.
To increase entry accuracy when buying on dips or selling on rallies using the RCI three-lines,
this indicator was developed.
Twitter
https://twitter.com/RCIX3Line
Blog
http://bodsor.blog.fc2.com/
Investment Navi+
https://fx-on.com/navi/serial/?id=359
YouTube
https://www.youtube.com/channel/UCL-g5uAlesiWVJEDtWlFvGw
Examples of pullback-buying and rally-selling signals on the USD/JPY hourly chart
※In the charts in this article, for convenience of explanation, circles, lines, squares, etc. may be drawn.
Please note.
